The European Bank for Reconstruction and Development (EBRD), a development finance institution based in the United Kingdom, has agreed to make a three-year loan of KGS 180 million (USD 4 million) in Kompanion Financial Group Microfinance Closed Joint Stock Company, a Kyrgyz microfinance institution (MFI). Kompanion intends to use the majority of the funding for lending to micro- and small enterprises (MSEs) in rural parts of the country.
As of December 31, 2010, Kompanion reports to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 50 million, a gross loan portfolio of USD 30 million, return on assets (ROA) of 4.78 percent, return on equity (ROE) of 20.82 percent and 119,000 active borrowers.
By Rohan Trivedi, Research Associate
About Kompanion Financial Group Microfinance Closed Joint Stock Company:
Kompanion Financial Group Microfinance Closed Joint Stock Company was established in Kyrgyzstan in 2004 through the consolidation of five microcredit agencies affiliated with Mercy Corps, an economic development and aid organization based in the United States. Kompanion describes itself as a “community development financial institution that seeks to combine conservation and development goals.” As of December 31, 2010, Kompanion reports to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 50 million, a gross loan portfolio of USD 30 million, return on assets (ROA) of 4.78 percent, return on equity (ROE) of 20.82 percent and 119,000 active borrowers.
About the European Bank for Reconstruction and Development (EBRD):
The European Bank for Reconstruction and Development (EBRD) is a development finance institution headquartered in London. The bank began operations in 1991 upon the agreement of 40 countries and is now owned by 61 countries as well as the European Investment Bank and the European Union. It aims to finance operations that are both commercially viable and assist development in 29 countries in Eastern Europe and Central Asia. It does this by providing loans, debt securities, equity investments, guarantees and technical assistance to micro- and small businesses via commercial banks and non-bank microfinance institutions (MFIs). In 2010, EBRD invested in 386 projects with a total value of EUR 22 billion.
Sources and Additional Resources:
[1] EBRD Press Release: “New EBRD loan to support small businesses in the Kyrgyz Republic”, http://www.ebrd.com/pages/news/press/2011/110907.shtml
MicroCapital.org story, August 2, 2011: “MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) to Loan $14m to Banca Intesa Beograd of Serbia for On-Lending to Small and Medium-Sized Enterprises (SMEs)”, https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-to-loan-14m-to-banca-intesa-beograd-of-serbia-for-on-lending-to-small-and-medium-sized-enterprises-smes/
MicroCapital.org story, July 15, 2011: “MICROCAPITAL BRIEF: responsAbility Loans $8m to Kompanion of Kyrgyz Republic, Eskhata of Tajikistan, XacBank of Mongolia”, https://www.microcapital.org/microcapital-brief-responsability-loans-8m-to-kompanion-of-kyrgyz-republic-eskhata-of-tajikistan-xacbank-of-mongolia/
MicroCapital.org story, June 21, 2011: “MICROCAPITAL BRIEF: Microfinance Expands in Rural Kyrgyzstan as Lending Shifts to Agriculture”, https://www.microcapital.org/microcapital-brief-microfinance-expands-in-rural-kyrgyzstan-as-lending-shifts-to-agriculture/
MicroCapital Universe Profile: Kompanion Financial Group Microfinance Closed Joint Stock Company, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Kompanion+Financial+Group+Microfinance+Closed+Joint+Stock+Company
MicroCapital Universe Profile: European Bank for Reconstruction and Development (EBRD), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Bank+for+Reconstruction+and+Development+%28EBRD%29
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
Similar Posts:
- MICROCAPITAL BRIEF: Uzpromstroybank (UzPSB) Borrowing $15m from EBRD for SMEs in Uzbekistan
- MICROCAPITAL BRIEF: EBRD Loans $4.4m to KEP Trust of Kosovo with Focus on Rural, Women-led MSMEs
- MICROCAPITAL BRIEF: Reefy Microfinance Borrows $6.5m from EBRD for Youth-led MSMEs in Egypt
- MICROCAPITAL BRIEF: EBRD Loans $21m to BMCI of Morocco as Part of Women in Business (WiB) Program
- MICROCAPITAL BRIEF: Arnur Credit of Kazakhstan Borrows $3.3m from Grameen Crédit Agricole to Expand Access to Microfinance
